MP Gary Vidal calls on Feds for clear wage subsidy wording to include limited-liability Indigenous businesses

Vidal, in his letter addressed to Finance Minister, Bill Morneau, said he would continue to push for limited partnership businesses that are operated by First Nations to be included in the Canada Emergency Wage Subsidy.”

Vidal’s letter, dated April 15, states the standard model for a First Nation in Canada to carry on a for-profit business is with the use of a Limited Partnership.

The simplest model is the incorporation of a for-profit Corporation, (100% owned by a First Nation), to serve as the General Partner, and the First Nation to serve as the sole Limited Partner. Many variations on this simple model exist, but all models will have the First Nation as a limited partner. These limited partnerships operate for-profit businesses in all parts of the Canadian economy, including; forestry, mining, manufacturing, construction and consumer sales.

Vidal said when Federal legislation defined what an eligible entity is they listed who was eligible for this wage subsidy. Limited partnerships that are often structured and operated by First Nations, do not fit that definition.

“Within the definition, there is a prescribed organisation portion, which we believe the minister could designate limited liability partnerships as a prescribed organisation without having to open the legislation,” Vidal said. “We believe there is a regulatory mechanism for them to fix this without it being that complicated.”

Vidal said Morneau had acknowledged receipt of the letter though had not heard anything further.

Al Balisky, President of Meadow Lake Tribal Council Industrial Investments said there is lots of uncertainty as to how these programs roll out and perhaps many groups who do not fit the precise definitions being employed.

“It’s been our experience so far the limited partnerships that we operate with, have not been eligible for this particular emergency wage subsidy.

“We’re so pleased the government of Canada is doing such good work on all these fronts, we’re doing our very best to keep employees going and trying to survive what is a very tough time in Canada’s history,” Balisky said. “There are some positive developments but we’ve got some uncertainty about how these things roll out.”

According to Canada’s Revenue Agency, eligible employers in Canada’s Emergency Wage Subsidy include individuals (including trusts), taxable corporations, persons that are exempt from corporate tax (Part I of the Income Tax Act), other than public institutions, non-profit organizations, agricultural organizations, boards of trade, chambers of commerce, non-profit corporations for scientific research and experimental development, labour organizations or societies, benevolent or fraternal benefit societies or orders, registered charities, partnerships consisting of eligible employers

Public institutions are not eligible for the subsidy including municipalities and local governments, Crown corporations, public universities, colleges, schools and hospitals.

According to Canadian Federation of Independent Business (CFIB), the federal government increased the wage subsidy to 75 per cent and opening it up to businesses of all sizes and structures. It will help many, but there are still a lot of businesses in dire need of help that report they will not be able to access it.

nicole.reis@jpbg.ca

Twitter: @nicolereis7722

by Nicole Reis

MP Gary Vidal calls on Feds for clear wage subsidy wording to include limited-liability Indigenous businesses

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